Operating company sells interest in Woodlands Mall

Published 6:00 pm, Wednesday, December 25, 2002

The Woodlands Operating Company sold its 50 percent interest in The Woodlands Mall to General Growth Properties, according to officials.

By MELANIE HILLIS

Jill Liccioni, general manager of The Woodlands Mall, said that the mall is an asset which General Growth Properties viewed as a great opportunity to purchase and have a 100 percent ownership of the property.

Paul Lazzaro, vice president of marketing and public affairs for The Woodlands Operating Company said that, as developers, the simple business deal is a natural part of what the company does. With the mall expansion, it was just time to let go of the property, said Lazzaro.

The Woodlands Mall is expanding its shopping center, adding an additional 150,000 square feet of retail space. The two-level expansion will stretch from the south entrance known as the carousel entrance and will connect to The Woodlands Waterway.

Lazzaro said that the developer's focus is The Woodlands Waterway and the development surrounding the project, a river-like avenue lined with retail, restaurants and pedestrian walkways.

For The Woodlands Mall, with 1.2 million square feet, it will be business as usual. Liccioni said that shoppers and employees will not be affected by the transaction. She said that currently their primary focus is the holiday shopping.

The Woodlands Mall, anchored by Foley's, Dillard's, J.C. Penney, Mervyn's and Sears, is currently approximately 96 percent occupied and produces sales of approximately $400 per square foot, according to officials.

General Growth Properties acquired 100 percent ownership of two other joint ventures. The two acquisitions are Florence Mall in Florence, Ky. and First Colony Mall in Sugarland, Texas.

The gross consideration for 100 percent ownership of all three properties will be approximately $276 million, including the assumption of approximately $31 million of existing fixed rate mortgage debt that encumbers The Woodlands Mall. It is anticipated that 100 percent of the net operating income from all three will be approximately $24 million in 2003, with General Growth Properties, equal to approximately $12 million, according to officials.